Millennial Media Inc. , a leading mobile advertising and data provider, has recently inked an agreement to acquire Metaresolver – a privately held mobile media buying and targeting platform – for an undisclosed amount. The all-cash transaction is expected to unlock significant value for mobile advertisers and strengthen Millennial Media’s position in the market.
San Francisco-based Metaresolver analyzes huge volume of data to identify, segment, and target consumers for mobile media. The company evaluates data through an industry-leading vetting process to filter and segment consumers according to demographics and psychographics to help advertisers target their brands to relevant consumers. This in turn leads to focused advertisements by companies, thereby, saving vital resources like money and time by minimizing advertisement clutter.
Metaresolver was founded by industry pioneers who shaped mobile media intelligence, mobile advertising and mobile content. The company intends to cater to a wider audience by merging with Millennial Media that reaches to an estimated 400 million monthly unique users worldwide, including approximately 160 million in the U.S. Post-acquisition, Metaresolver will continue to operate from its home location.
Millennial Media expects to reap synergistic benefits from the acquisition and augment its revenue amid increased competition in the mobile ad segment. The company has developed about 350 million proprietary, anonymous user profiles and more than 39,000 apps operate on its platform. The company reportedly delivers advertisements on more than 7500 distinct device types, out of which almost 20% include non-phone devices like tablets and gaming devices. The company intends to focus its development efforts more on such devices in 2013, and the current acquisition could be of immense significance in this regard.
Millennial Media presently has a Zacks Rank #3 (Hold), while its rivals such as Publicis Groupe SA (PUBGY - Free Report) and The Interpublic Group of Companies, Inc. (IPG - Free Report) carry a Zacks Rank #2 (Buy) each. Other notable company in the industry that warrants a look includes Omnicom Group Inc. (OMC - Free Report) .